regional formation and development studies - Klaipėdos universitetas

Roland Schmuck
OPERATIONS STRATEGIES
just-in-time practices. The first consists of quality management, work force management, manufacturing strategy,
organizational characteristics and product design. The later consists of set-up time reduction, schedule
flexibility, maintenance, equipment layout, kanban and just-in-time supplier relationship. The introduction
of just-in-time is often considered difficult and problematic, but R. Walleigh (1986) clearly demonstrates that
the issues can be eliminated. The introduction process is time and energy consuming; however the real value
lies in the fact that it is not only a production system, but an operating philosophy (Walleigh, 1986).
The accelerated competition makes even subsistence a hard thing, but companies may gain competitive
advantage with simple changes, e.g. better planning, marketing or changing the financial background. Unfortunately
beside these factors companies often neglect production facilities where most of the employees
work. Production needs to be converted into the strength of the company; all production function should
work well-oiled. In the four-level system of S. Wheelwright and R. Hayes (1985) there are long-term development
programs to increase the competitiveness, so the company can move up in the four-level model. The
majority of companies move from one level to another by external pressure, because they feel comfortable
and safe to maintain the lower levels where there is not so much need for high knowledge and managerial
skills as on the more advanced levels. In the fourth and most advanced stage there is continuous process improvement,
and high care that the product development and the process design are in accordance with each
other (Wheelwright, Hayes, 1985).
The ever-increasing product variety and shortening product life cycles increase the uncertainty of the
estimations. In the accurate response method the costs of lack of products are calculated, the products are divided
into estimable and not estimable demanded categories. It is recommended to manufacture products in
the first category earlier and later with more available information those products where it is hard to estimate
the exact demand. Sport Obermayer skiwear manufacturing company could reduce cost from inaccurate
forecast by half with this method.
Conclusions
During the 20 th century there were several shifts in the most important success factors. It can be seen that
all factors are still important, but the basic of competitive advantage changes from time to time.
Figure 3. Changes in the operational management focus since the beginning of the 1900s
Source: own edition
The author claims that all of the above competitiveness factors are still important nowadays except one.
The mass customization theory did not fulfil the expectations so it is not used widely nowadays. Companies
are in a tough competition nowadays. Operations are becoming more and more complex and time also
became an issue. In today’s world a successful company should take into account during strategic planning
the continuing strengthening of the global competition, the constantly changing environment, shortening
life-cycles and the growth of risks. The author suggests as an answer to these questions is to build core com-
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